The Government has stamped out another payment pain point, extending its surcharge ban to foreign-issued cards and commercial cards to make life easier for businesses and consumers.
Commerce and Consumer Affairs Minister Scott Simpson announced that the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill passed its first reading. The Bill prohibits surcharges on all in-store EFTPOS, Visa and Mastercard payments.
“Including foreign cards is easier for everyone. A comprehensive ban means businesses don’t have to second-guess what’s in or out, and consumers won’t get stung by surprise add-ons at the checkout," said Simpson.
“International visitors from our big inbound tourism markets like the United Kingdom and Europe, where surcharges are long gone, won’t feel like they’ve stepped back in time or they are being ripped off. I want consumers to enjoy the benefits as early as possible, so the Bill proposes a one-month implementation period once it has been passed."
The ban will be in place by May 2026, or sooner if possible. By the time the ban is in full swing, the savings from the Commerce Commission’s latest cut to banking fees will benefit businesses, with expected savings of up to NZD 90 million a year.
"That’s on top of the earlier savings of NZD 140m from caps set in 2022. The ban means Kiwi shoppers will no longer be confronted at payment terminals by a pesky sticker and surprise, sometimes excessive, costs.”
The Retail Payment System (Ban on Merchant Surcharges) Amendment Bill will go to the Finance and Expenditure Committee.
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